Net sales $52,935 Cost of merchandise sold 36,232 Gross profit on sales

Q: Define the term declining-balance?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: Explain why reclassification adjustments are necessary.

A:

Q: Describe the Declining-Balance Method with examples?

A:

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: Explain AMENDMENT OF TIME FRAMES?

A: Time frame is the slot if time under which something has to occur or planned. Here, time frames…

Q: Define Depletion.

A:

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: What is the purpose of the valuation allowance?

A: purpose of the valuation allowance are as follows

Q: Describe the accounting for correction of errors.

A: The accounting for correction of errors will be explained:

Q: Explain the accounting for gain and loss ­contingencies.

A: Contingencies:   Contingency is a situation where the outcome becomes uncertain and is resolved in…

Q: WHAT IS FUNCTIONAL OBSOLECENSE OF ASSETS?

A: Functional obsolescence of assets is discussed hereunder : The term ' Obsolescence' refers to…

Q: Difference between periodic LIFO and perpetual LIFO methods.

A: LIFO:   LIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: The purpose of adjustments is to?

A: In simple words, adjusting entries are the changes to the journal entries that are already made in…

Q: Define Deferred Payments.

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: How to calculate deprecation

A: Fixed assets are assets which are held by the business for longer period of time. For example, Land,…

Q: Describe the accounting for correction of errors.

A: Accounting errors refer to the errors made while recording, classifying or summarizing accounting…

Q: Explain different types of depreciation.

A: Depreciation expenses come in a variety of forms, and there are numerous methods for calculating an…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: When is it necessary to estimate inventories?

A: Inventories are resources which are held to be sold in the market. Inventories can be in the form of…

Q: What do you mean by adjustment entries ?

A: A journal entry is being used to track a business transaction in a company's accounting records. A…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is